Q: I learn your current article about refinancing. My daughter simply obtained an rate of interest somewhat below three p.c, and I, too, wish to refi, however I simply heard that the banks are going to start out charging a surcharge on refis. Have you learnt something about this?
A: I believe what you’re referring to are Fannie Mae and Freddie Macc, and the brand new payment they’re going to begin charging on most dwelling mortgage refinances.
Fannie and Freddie are quasi-governmental companies that purchase the vast majority of dwelling mortgages written by banks, after which repackage them as mortgage-backed securities which are assured towards default. Since Fannie and Freddie purchase the vast majority of their dwelling loans, banks are cautious to stick to the companies’ underwriting tips, and the assure, in flip, permits banks to supply comparatively low rates of interest on such mortgages. However starting Sept. 1, till in any other case directed, Fannie and Freddie will begin charging a further zero.5 p.c payment on most dwelling mortgage refis. The rationale for the brand new added payment, in accordance with the Federal Housing Finance Company, which oversees and regulates Fannie and Freddie, is to guard towards anticipated losses from the coronavirus pandemic.
What one arm of the federal authorities – the Federal Reserve Board — giveth within the type of low rates of interest, one other arm of the federal government – the Federal Housing Finance Company – taketh away.
Q: I reside in a apartment affiliation, and our bylaws state that the voting within the annual assembly is predicated on unit proportion of possession. The board refuses to abide by the bylaws concerning elections, and solely permits 1 vote per unit. What ought to the unit house owners do?
A: Apartment boards shouldn’t have the authority to ignore categorical provisions of the affiliation’s governing paperwork and make up their very own voting practices.
If the householders’ efforts to teach the board members about correct procedures are unsuccessful, the unit house owners are greatest served to arrange and elect new board members.
Linda Goodspeed is a longtime actual property author and creator of “In and Out of Darkness.” Electronic mail her at email@example.com.